Government spending never enhances economic growth precisely because governments only have money to spend insofar as they have taxable access to private economic activity. In other words, government spending is an effect of economic growth, never an instigator.
Except that the challenges of government spending don’t just stop right there. Take the difficulties that are presently being experienced by Sagitec, a software development company. The company is being sued by the University of California (Regents of the University of California v. Sagitec Solutions), and the UC lawsuit against the company is rooted in a dispute over Sagitec’s revamp of the UC’s pension administrative system which is used, among other things, to calculate and distribute retirement pay to former UC employees. Which requires a pause.
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